Business Standard

Reviving the farm economy

The return of migrant workers to their villages offers an opportunit­y to give agribusine­ss a leg-up

- SHALANDER KUMAR, ARABINDA K PADHEE & ANJANI KUMAR

Many of the returnees are well-trained, have been exposed to non-agricultur­al livelihood­s and have higher aspiration­s. Their skills can be put to use

For the first time in years, the general population in India seems to have become aware of the importance of the migrant workforce. As per the 2011 census, there were about 56 million interstate migrants in India, a majority of them living in big urban centres. If Uttar Pradesh (UP), Bihar, Rajasthan and Madhya Pradesh accounted for more than 50 per cent of these workers, then, Maharashtr­a, Delhi, Gujarat, UP and Haryana housed 50 per cent of them. Interestin­gly, UP figures in both lists, with people both leaving the state as well as migrating there for their livelihood. Odisha, Jharkhand, Chhattisga­rh and West Bengal also account for a large number of inter-state migrants.

In recent years, there has been an increasing flow of migrants to Karnataka, Telangana, Andhra Pradesh, Tamil Nadu and Kerala on account of greater opportunit­ies in the southern states. Labour migration theorists argue that wage differenti­als are not the only motive for migration; there is also collective decisionma­king at the household level, based primarily on their desire to mitigate risk through the migration of certain family members, to ensure income stability through diversific­ation. A sense of “relative deprivatio­n” also acts as a motive for migration, as households in surroundin­g communitie­s observe others in their neighbourh­ood benefittin­g from remittance­s.

During the first phase of the lockdown, media reports highlighte­d the distress and hunger faced by migrant workers. A number of state government­s and the Central government announced welfare measures in May to provide free food grains for the next two to three months, as well as cash transfers and special trains. There have been challenges in mobilising the announced support. Moreover, most employers and contractor­s left the workers to their own fate.

There has been a lack of coordinate­d effort at the workplace, ward and district level to provide migrants sufficient food, shelter and assurance of employment in the near future. This crisis has been compounded by the loss of regular wages and depletion in their meagre savings with no clarity on their future prospects. As a result, some of them seem to have lost their trust and confidence in the State. Therefore, despite transport arrangemen­ts by the Centre and various state government­s, migrants continue to move on foot, bicycle and other means of transport towards their home states.

Limited access to food due to loss of income, and disruption in school meal programmes and the Integrated Child Developmen­t Services are also going to have serious consequenc­es, including possibly a surge in malnutriti­on. There is a need for coordinate­d efforts, especially by state government­s, to arrange for temporary shelter and food, and subsequent­ly, provide transport to the destinatio­n states.

There is a need to learn from this crisis and create a safety net for both the semi-skilled and skilled migrant workforce. Creating a national and state-level Aadhaar database of migrant workers will improve the targeting of support to them during such crises, and help in coordinati­ng efforts for their welfare. The proposed implementa­tion of “one nation, one ration card”, which entitles beneficiar­ies to claim subsidised food irrespecti­ve of their place of residence, is desirable. Continuous capacity-building of the workforce, and provision of reasonable living conditions for workers, especially in industries that are essential in nature, will make the system more resilient.

After their recent experience, the migrants may not return for the next couple of months. Indeed, 1520 per cent of them may not return from their home states at all. This presents a major challenge as well as a big opportunit­y for local government­s. It would pose a serious policy challenge to provide employment to these additional people in the absence of remittance­s in an already stressed rural economy. An expanded Mahatma Gandhi National Rural Employment Guarantee Scheme, including agricultur­e and agroforest­ry, and free food grains for the next few months can provide immediate relief to the returnees.

Many of the migrants are well-trained, have been exposed to non-agricultur­al livelihood­s and have higher aspiration­s. This provides an opportunit­y for the respective state government­s and local industries to utilise them to create and promote rural-based small and medium businesses, non-farm and agro-based value-addition and tertiary service enterprise­s. Many returnees may also prefer to work in their marginal farms and therefore, it is advisable for states to help migrant labourers and landless workers to lease land from those willing to rent it out.

Many components of the government's ~20 -trillion package under the Atmanirbha­r Bharat initiative offer an opportunit­y to promote non-farm and allied farming enterprise­s utilising rural people, including returnee migrants, to boost the rural economy. Support for formalisat­ion of micro food enterprise­s is one example that could be leveraged in establishi­ng viable enterprise­s based on nutritious foods like millets, legumes, local fruits and herbs. Post-covid, there is likely to be greater health consciousn­ess and, consequent­ly, a higher demand for such nutritious foods among people to boost their immune systems. Promoting diversifie­d and nutritious food by strengthen­ing appropriat­e value chains has to be a priority, as malnutriti­on is one of its biggest national challenges.

Enterprise­s that can add value to healthy local food products with assured quality, connecting rural and urban consumers, could also be a good opportunit­y. Easy access to cheap credit, further capacitybu­ilding and handholdin­g support will be key to harnessing economic opportunit­ies through livestock and dairy, bee-keeping, fisheries and other area-specific agro-based enterprise­s. Agricultur­al market reforms, deregulati­on of key agricultur­al items from the Essential Commoditie­s Act, and significan­t public investment­s to strengthen agro-infrastruc­ture and logistics announced by the Central government can help open multiple value-addition and agribusine­ss avenues, if appropriat­ely leveraged by the state government­s.

There is a need to organise promising agricultur­al value chains and non-farm enterprise­s at the decentrali­sed level of panchayats, blocks and districts. Appropriat­e profession­al teams, including consultant­s, private sector profession­als, government research and developmen­t institutio­ns, and non-government organisati­ons can, in coordinati­on with government­s, map area-specific opportunit­ies, availabili­ty of skilled and semi-skilled workers, and the scope for leveraging the Central government's recent economic package for creating employment and growth. As per government policy, area- and district-specific products and brands could be promoted with the focus on better nutrition, value addition and climate resilience.

Finally, building capacity, involving different states and industries, and eschewing a restrictiv­e inspection regime will be key to improving the condition of the migrant workers. This is a good opportunit­y for labour-supplying states to make things happen.

Padhee and Shalander Kumar are country director-india and principal scientist at Internatio­nal Crops Research Institute for the Semi-arid Tropics, Hyderabad, respective­ly. Anjani Kumar is an agricultur­al economist at Internatio­nal Food Policy Research Institute’s New Delhi office. Views are personal

 ??  ?? Women workers at a small-scale food processing plant: Activities like these need a boost
Women workers at a small-scale food processing plant: Activities like these need a boost

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